Notes on Neoliberalism, Higher Education, and the Knowledge Economy

Neoliberalism and Higher Education

• Neoliberalism Emergence:

  • Neoliberalism gained prominence in the 1980s and 1990s.
  • Shift from traditional open intellectual inquiry in universities to an emphasis on performativity, focused on measured outputs.
  • Increased reliance on strategic planning, performance indicators, quality assurances, and academic audits.

• Impact on Higher Education:

  • Governments view higher education as essential for economic growth, promoting links with industry.
  • Universities seen as key players in the knowledge economy and encouraged to develop entrepreneurial skills.
  • New performative measures established to enhance outputs and achieve set targets.

Neoliberalism vs. Globalization

• Definition of Globalization:

  • A broader phenomenon encompassing technological advancements, impacting commerce, communication, and travel.
  • Neoliberalism is only one aspect of globalization, emphasizing free commerce and trade.

• Neoliberalism Characteristics:

  1. Self-Interested Individual:
  • Individuals as rational actors optimizing personal interests.
  1. Free Market Economics:
  • Seen as the best method to allocate resources and opportunities.
  1. Laissez-Faire Approach:
  • Minimal governmental intervention, prioritizing market self-regulation.
  1. Commitment to Free Trade:
  • Support for the abolition of tariffs and subsidies, with open economies.

Neoliberal Regulation in Higher Education

• Governmentality in Neoliberalism:

  • Introduces a new regulatory approach, differing from the welfare liberalism it replaced.
  • Focus on market-oriented conduct and entrepreneurial individualism.
  • Emphasis on monitoring and control through auditing, performance management.

• Classical vs. Neoliberal Liberalism:

  • Classical: Advocates for individual autonomy without state interference.
  • Neoliberal: The state positively constructs market conditions and individual behavior to foster entrepreneurship.

Neoliberalism, Agency, and Transaction Cost Economics

• Agency Theory (AT):

  • Describes relationships in work contexts as contracts between principals (employers) and agents (employees).
  • Concerned with ensuring agents act according to principals' interests, employing methods of monitoring and control.

• Transaction Cost Economics (TCE):

  • Explores the efficiency costs of transactions in organizational structures related to market operations.
  • Focused on minimizing costs through optimized governance structures appropriate for varying market contexts.

Changes in Professionalism

• Shift from Professional Autonomy:

  • Increase in managerial oversight and micromanagement of academic roles.
  • Declining collegial governance, replaced with hierarchical structures dictating workloads and outputs.

• Professional Identity Transformation:

  • Professionals reconceptualize identities and relationships within the context of neoliberal management practices, leading to tensions between traditional values and new managerial expectations.

Knowledge Economy and Capitalism

• Emergence of Knowledge as Capital:

  • Knowledge seen as primary economic resource, leading to 'knowledge capitalism'.
  • Influence of various economic theories and the importance of knowledge in drivers of economic growth and productivity.

• New Growth Theory:

  • Investment in knowledge characterized by increasing returns, influencing economic productivity patterns.

• OECD and World Bank Reports:

  • Emphasis on knowledge networks, human capital development, transitional adaptations in education aligned with economic demands.
  • Calls for collaboration between education and industry for knowledge production and innovation.

Conclusion

• Continued Profession Transformation:
  • As neoliberal policies integrate into higher education, the discussion will increasingly focus on the balance between accountability, quality assurance, and professional autonomy in the context of marketization.